National Insurance holiday for employers of veterans
Did you know that if you hire a former member of the UK armed forces in their first year of civilian employment from 06 April 2021, you can claim back the employer’s National Insurance for up to 12 months?
HMRC have confirmed that there will be a retrospective National Insurance relief, whereby payroll teams can submit a revised Full Payment Submission (FPS) for the 2021/22 tax year, using National Insurance category letter ‘V’.
You must continue to pay employer’s National Insurance until the end of the tax year before making a claim for the relief. This will give software providers time to update the payroll software ready for the 2022/23 tax year, at which time you can apply the relief through Real Time Information (RTI) as normal.
When hiring a qualifying veteran, you will need to hold evidence of their service, such as veterans ID card, discharge papers, or P45 from the HM Armed Forces.
For further information on national insurance, please contact James Alesbury on 023 8046 1222.